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A bipartisan group of US lawmakers advised the Securities and Exchange Commission (SEC) in a May 22 letter to approve spot ethereum exchange-traded funds (ETFs).
Signers of the letter included Finance Committee Vice Chairman Rep. French Hill, House Majority Leader Tom Emmer, and Reps. Josh Gottheimer, Mike Flood and Wiley Nickel.
ethereum ETF
In it x.com/RepFrenchHill/status/1793621840021360903/photo/2″>letter Addressed to SEC Chairman Gary Gensler, the lawmakers urged the regulator to apply the same principles it used for spot bitcoin ETFs to ethereum ETF applications. They argued that this would demonstrate regulatory coherence.
The letter noted that the launch of the bitcoin ETP provided a regulated and transparent investment vehicle for US investors. He also highlighted the SEC's commitment to protecting investors and accepting modern financial markets, arguing that approval of an ethereum ETF would reinforce this commitment.
The legislators added:
“With the Commission's actions earlier this year, it seems a natural progression that would not only demonstrate consistency in the Commission's application of its standards, but also affirm the legal reasoning that facilitated the decision on bitcoin ETPs “.
Lawmakers also stated that the SEC's market surveillance and enforcement measures would mitigate concerns about market manipulation and that transparency and reporting requirements would allow investors to make informed decisions.
The support for ethereum ETFs comes amid a changing regulatory landscape for cryptocurrencies in the US. Recently, the industry has been at the center of conversations and debates, leading to the passage of bills to create regulatory clarity for the emerging industry.
'Stay tuned'
The SEC Chairman hinted that a decision on pending eth ETF applications is imminent and advised market watchers to “stay vigilant.”
Several industry experts anticipate the approval of these financial instruments later today, May 23.
After weeks of minimal participation, the SEC recently asked exchanges supporting ETF applications to refile their Forms 19b-4 with standardized language. Additionally, the SEC appears to be engaging directly with potential issuers, as companies like Grayscale have filed updated S-1 forms this week.
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